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ISLAMABAD, Aug. 2, 2026: Workers of the state-owned Pakistan Mineral Development Corporation (PMDC) have warned that the dispute over the Warcha rock salt mining lease could jeopardize a proposed $200 million foreign investment, threaten thousands of jobs, and weaken investor confidence in Pakistan’s mining sector.
Speaking at a news conference, All Pakistan CBA Unions of PMDC Secretary General Rai Mazhar Iqbal Kharal said PMDC’s mining lease was lawfully renewed and remains valid until March 2032. However, he alleged that the Punjab government cancelled the lease and auctioned the same mining area to a private company despite the matter being pending before the Lahore High Court.
Furthermore, Kharal said the dispute could undermine Pakistan’s efforts to attract foreign investment in value-added mineral exports. He warned that uncertainty over legally granted mining rights could discourage international investors.
He added that the proposed $200 million investment in downstream rock salt processing would introduce modern technology, create jobs, boost exports, increase foreign exchange earnings, and strengthen Pakistan’s position in global processed rock salt markets.
Meanwhile, Warcha Union leader Main Aftab Ul Hasan said regulatory certainty and transparent decision-making are essential for attracting long-term investment. He warned that continued uncertainty could discourage future investment in the mining sector.
In addition, Hasan expressed concern over the livelihoods of thousands of workers and miners linked to the Warcha mine. He said any disruption to mining operations would have serious economic and social consequences for employees and nearby communities.
He also noted that PMDC has operated the Warcha mine for decades, generating significant revenue for Punjab while developing mining infrastructure and technical expertise.
Moreover, the union claimed PMDC had offered the Punjab government better financial returns than the auction arrangement. It argued that allowing PMDC to continue operations would provide greater long-term benefits for both the federal and provincial governments while ensuring uninterrupted production and employment.
The union also questioned awarding the lease to a private company, alleging it lacks PMDC’s experience in large-scale rock salt mining, mineral exploration, and resource management.
Finally, the CBA reaffirmed its support for PMDC’s legal challenge in the Lahore High Court. It urged authorities to protect employment, uphold contractual certainty, and safeguard national mineral assets to sustain investment and long-term growth in Pakistan’s mining industry.
